Why publishers cannot rely on first-party data alone to maintain revenues

As privacy laws tighten and cookies fade, publishers are facing the critical question: Is first-party data enough to maintain ad revenue? A recent survey from Digiday revealed that out of all the data types available, 64.1% of publishers^[1] believe first-party data plays the most significant role in generating positive ad revenue outcomes for their organisation. This is hardly surprising. With the deprecation of third-party cookies by major browsers and Apple’s introduction of App Tracking Transparency, industry experts in recent years have consistently recommended that publishers prioritise first-party data.

The rationale is that by leveraging the data they collect directly from their users, publishers can enhance the value of their ad inventory. Advertisers are willing to pay a premium for targeted, relevant audiences, and first-party data allows publishers to offer these audiences with greater precision. This, in turn, leads to more effective ad placements, higher click-through rates, and better revenue outcomes.

The challenges in flying solo

Yet, while first-party data offers valuable insights into user behaviour, preferences, and engagement, its scope is inherently limited. As many publishers acknowledge, not all media owners have access to a wealth of logged-in data. In a conversation with Digiday^[2] earlier this year, representatives from both Fortune and TVTropes.org revealed that their logged-in user bases are relatively small. Despite efforts to increase this percentage, they anticipate that the numbers will remain modest.

So what can publishers in similar situations do to optimise their data strategies and ad revenue? The answer is certainly not to hide all content behind a registration wall. Such a drastic move would likely result in higher bounce rates and lower audience engagement, ultimately leading to lower revenues.

Some publishers have turned to IP addresses to boost their addressability rates. However, with growing privacy concerns and the potential for new regulations restricting the visibility and use of IPs, they should be viewed as a baseline or input signal rather than a standalone solution.

Instead, publishers should focus on strategies that expand their audience reach while enhancing their existing first-party data with insights from third-party sources.

Increase your inventory’s value

We believe that to truly maximise the potential of first-party data, publishers need to enrich it with third-party insights. Third-party data can provide a more comprehensive view of users by filling in the blanks that first-party data alone cannot cover. For example, third-party data can offer demographic information, behavioural patterns across different sites, and psychographic details that enhance the understanding of user profiles. This enriched data allows publishers to create more detailed audience segments, improving targeting precision and making ad inventory more valuable to advertisers.

In an era where data privacy regulations are tightening and consumer expectations around privacy are rising, combining first-party data with third-party insights also allows publishers to maintain compliance while still delivering the depth of targeting that advertisers demand. The key is to select third-party data sources that are reputable and compliant with privacy standards, ensuring that the enrichment process does not compromise user trust.

This is where our addressability and linkage solution, Consumer Sync, comes in. Thanks to our extensive level of scale – we cover over 82% of UK households – we can match your first-party data to our own and extend the reach of your data across the web. What’s more, with a demographic file of over 95% of the UK population, we can enrich your first-party data with deep insights, to build look-a-like models which you can use to further scale your audiences.